Find out what is period of Insurance and Premium rates for Short Period Insurance for Motor policies…
- Usually Period of Insurance in Motor policies will be 12 months. In any case policy won’t be issued more than 12 months.
- In some cases like purpose of arriving at a particular renewal date or for any other reasons convenient to the Insured Motor Policies may issue less than 12 months. This is Called Short period cover.
- Short Period Cover/ Renewal may be granted for periods less than twelve months at the following short period scale:
| Short Period | % of Annual Premium Rate |
|---|---|
| Short Period | % of Annual Premium Rate |
| Not exceeding 1 month | 20% |
| Exceeding 1 month but not exceeding 2 months | 30% |
| Exceeding 2 months but not exceeding 3 months | 40% |
| Exceeding 3 months but not exceeding 4 months | 50% |
| Exceeding 4 months but not exceeding 5 months | 60% |
| Exceeding 5 months but not exceeding 6 months | 70% |
| Exceeding 6 months but not exceeding 7 months | 80% |
| Exceeding 7 months but not exceeding 8 months | 90% |
| Exceeding 8 months | Full annual premium/ rate |
In recent developments as per supreme court order 3 years policy will be issued to a new Private Car at the time of delivery.
In same way 5 years policy will be issued to a Motor Cycle/scooter at the time of delivery.